SALT LAKE CITY, Jan. 09, 2025 (GLOBE NEWSWIRE) -- The Financial Data Exchange (FDX) is pleased to announce its official recognition by the Consumer Financial Protection Bureau (CFPB) as an industry standard-setting body for the U.S. open banking ecosystem.
“This recognition provides helpful clarity to the market at a critical time. Many firms are running fast to come into compliance with the CFPB’s recent Open Banking regulation and give customers more control over their financial data. The recognition underscores FDX’s position as a leading forum for companies and nonprofits from across the financial ecosystem to collaborate on interoperable methods for secure, consumer-permissioned data sharing,” says Kevin Feltes, Chief Executive Officer of FDX.
Under the CFPB’s recently published Open Banking regulation (the Required Rulemaking on Personal Financial Data Rights), thousands of companies—including banks, fintechs, data access platforms, and others—will now be required to build interfaces or update integrations that enable consumers to share their financial data with authorized parties. Under this Rulemaking, a CFPB-recognized industry “standard-setting body” can issue consensus standards that companies can use to help them comply with certain requirements in the Rulemaking.
In June 2024, the CFPB established a process for recognizing standard-setting bodies. This included a list of attributes that recognized standard-setting bodies must demonstrate, including openness, balanced decision-making, consensus, due process and appeals, and transparency.
"Since its founding, FDX has incorporated input from many diverse parties into our consensus-driven process for defining standards. We remain deeply committed to being open, transparent, and balanced in alignment with the conditions the CFPB has described. And, we’re eager to continue welcoming new voices to the table” said Franklin Garrigues (TD Bank), co-chair of the FDX Board of Directors.
“This recognition is a key milestone that FDX has been working toward in our ongoing journey to promote reliable, safe data sharing as the Open Finance ecosystem continues to grow,” said Jane Barratt (MX), co-chair of the FDX Board.
Key Highlights About FDX and Its Standards:
The CFPB’s recognition comes at a critical time, with the recent rollout of new open banking regulations in the United States creating new compliance obligations for thousands of firms. These regulations are set to transform how businesses and consumers interact with financial data and create an urgent need for standardized, scalable solutions.
FDX membership is open to individuals and organizations of all sizes and provides the opportunity to collaborate with others who are working to implement secure data sharing, while influencing the standards that will drive the evolution of open banking in the years ahead.
About FDX
Financial Data Exchange (FDX) is a non-profit organization that is dedicated to unifying the financial industry around a common, interoperable, royalty-free standard for secure and convenient consumer and business access to their financial data. FDX empowers users through its commitment to the development, growth, and industry-wide adoption of the FDX API, according to the principles of control, access, transparency, traceability, and security. Membership is open to financial institutions, fintech companies, financial data aggregators, consumer advocacy groups, payment networks and other industry stakeholders. For more information and to join, visit www.financialdataexchange.org.
Contact:
Porche Matthews, Marketing Manager
pmatthews@financialdataexchange.org